In the News

Europe is becoming the preferred overseas investment locale among millionaires. Not to be left out, the average retail investors can diversify with European equity exposure through exchange traded funds as well.

However, the Vanguard FTSE Europe ETF (NYSEArca: VGK), which is exposed to currency risks, has seen $410.8 million in outflows. The outflows from the non-hedged European equities fund suggest that investors are becoming more aware of the negative effects a quickly depreciating euro currency can have on euro-denominated investments, despite any gains in the Eurozone market.

According to a recent Spectrem Group survey of 1,465 people with investible assets of $1 million to $5 million, millionaires are putting more money into European securities, reports Robert Frank for CNBC. [2015 Could Be a Good Year for Europe ETFs]

George Walper, president of Spectrem Group, argues that millionaires aren’t particularly bullish on the region but investors believe the region and its government is more stable and less involved in the economy than others, like China, Brazil and other emerging markets that have a more heavy-handed approach.

“I think it’s more around where they have the most comfort,” Walper said in the article. “When you look at China and Brazil and other countries there’s a concern about stability and what the governments are doing.”